Georgia’s economy grew by 6.5% y/y in Jul-25
In Jul-25, Georgia’s economy grew by 6.5% y/y, slightly above the 6.3% y/y growth posted in previous month. Cumulatively, real GDP increased by 8.0% y/y in 7M25. July’s growth was supported by strong performance in transport & storage, ICT, arts & entertainment and trade sectors, while manufacturing and construction sectors contracted. We forecast real GDP growth at 7.5% in 2025 (see latest macro forecasts here).
Bank lending increased by 14.9% y/y in Jul-25
In Jul-25, the banking sector loan portfolio increased by 14.9% y/y (+0.3% m/m), excluding FX effect, after a 15.6% y/y growth in previous month. In unadjusted terms, loan portfolio rose by 15.7% y/y (-0.2% m/m), reaching GEL 66.1bn (US$ 24.4bn), after growing 15.5% y/y in Jun-25. By sector, loans to legal entities increased by 15.6% y/y (excluding FX effect), while retail loans rose by 14.3% y/y. Loan dollarization reduced to 42.4% (-0.69ppts m/m and -1.86ppts y/y) in Jul-25.
On the deposits side, there was a 10.9% y/y increase (excluding FX effect) to GEL 62.0bn (US$ 22.8bn) in Jul-25, following a 11.6% y/y growth in previous month. In terms of currency breakdown, GEL deposits grew by 8.8% y/y (+9.5% y/y in Jun-25) and FX deposits (exc. FX effect) increased by 13.2% y/y (+13.7% y/y in Jun-25). In addition, deposit dollarization stood at 49.7% in Jul-25 (flat m/m and +1.17ppts y/y).
NBG purchased US$ 416.9mn in Jul-25
GEL’s appreciation trend enabled the NBG to buy a solid US$ 416.9mn on the FX market in July 2025. Overall, the NBG’s net purchases reached US$ 1.3bn in 7M25.
